Two AIs Diverge on Bitcoin Bear Market Signals
After a 30% decline from its all-time high above $126,000, Bitcoin’s price dipped below $90,000.
Analysts asked ChatGPT and Google Gemini if this marks a Bitcoin bear market. ChatGPT flagged the double-digit slide, institutional outflows, and said sustained declines over months define a bear phase. The Fear and Greed Index at 10 signals extreme fear — a potential buying opportunity.
Gemini defined a 20% drop as the technical threshold for a Bitcoin bear market. It highlighted the fall below $100,000 and a death cross on moving averages. Gemini concludes Bitcoin has technically entered bear market territory but cautions it may not trigger a prolonged crypto winter.
Traders should watch these technical and sentiment indicators to gauge market direction.
Bearish
The consensus among AI chatbots that Bitcoin has entered bear market territory — highlighted by a 30% price drop, the formation of a death cross, and extreme readings on the Fear and Greed Index — points to a predominantly bearish scenario. Historically, 20%-plus declines often trigger further sell-offs in the short term as traders and institutions reduce exposure. The death cross, a sign of downward momentum, has preceded extended correction phases in 2018 and 2022. Low institutional demand and ETF outflows can exacerbate the downtrend. However, extreme fear readings may also set the stage for a rebound, offering tactical buying opportunities for contrarian investors. In the longer term, if selling pressure stabilizes and sentiment recovers, a new bull cycle could emerge, but current signals favor continued caution among traders.